Purchasing power 1.4 percent up in 2009

15/07/2010 15:00

The purchasing power of the Dutch population improved by 1.4 percent last year. The incomes of employers who kept their jobs improved above average, mainly due to wage increases. The purchasing power of self-employed, on the other hand, was reduced significantly. Incomes of people who became unemployed or disabled fell dramatically.

Purchasing power 2009* (if source of income does not change)

Purchasing power 2009* (if source of income does not change)

Increase purchasing power employees above average

With 3.1 percent, the purchasing power of employees who did not lose their jobs rose above average.

Benefit recipients’ incomes improved less. Among pensioners – the largest group – purchasing power increased 0.2 percent. The purchasing power of disabled and benefit recipients improved by 1.5 and 1.4 percent respectively. People unemployed in 2008 and 2009, had to cope with loss of purchasing power (0.6 percent).

Incomes of employees who lost their jobs were reduced dramatically. They lost more than 16 percent of their purchasing power. The purchasing power of people who became disabled or retired was reduced by approximately 11 percent.

Purchasing power highest incomes reduced

The 10 percent of people in the highest income brackets lost 0.4 percent of their purchasing power in 2009, whereas the purchasing power of the lowest income brackets improved above average. The incomes of the poorest 10 percent increased by 1.7 percent.

Purchasing power by income category, 2009*

Purchasing power by income category, 2009*

Purchasing power increase the same as in 2008

Purchasing power improved about as much as in 2009 as in 2008, but was below the average level of improvement throughout the past 25 years. Since 1985, the purchasing power of the Dutch population has grown by an average of 1.8 percent annually.

Purchasing power, 1985-2009

Purchasing power, 1985-2009

Reinder Lok